Crypto Chaos: Brazil Bans X, Chile Sues Worldcoin, and U.S. Targets Venezuelan Petro!

• Brazil bans X, impacting cryptocurrency communication; the suspension could alter how crypto news is disseminated in the region.
• Chile’s Worldcoin faces legal challenges over biometric data handling, highlighting privacy concerns in the crypto industry.

This week, Latin America has been at the forefront of important developments in the realm of cryptocurrencies and social media, highlighting regulatory actions and new policies that could have a substantial impact on the region.

As we reported in CNF, in Brazil, the government has suspended the operations of X (formerly known as Twitter), after determining that the platform was not complying with local regulations. This move could have deep repercussions, not just in terms of freedom of expression, but also in how cryptocurrency information is shared within the country. Given X’s popularity among cryptocurrency enthusiasts, this ban could affect the way market news and analysis are disseminated.

Continuing with the reports we have on Chile, Optimistic SpA, operator of Worldcoin, faces a lawsuit from the National Consumer Service (SERNAC) due to concerns over how it handles users’ biometric data.

Director Nacional, Andrés Herrera, presentó una denuncia infraccionaria en contra de Worldcoin, operada en el país por la empresa “Grupo Optimistic SpA” y sobre la que recibimos una serie de reclamos y alertas de las y los consumidores. Acá, el DN nos cuenta más pic.twitter.com/JDxDi8xZXY

— SERNAC (@SERNAC) August 29, 2024

This case underscores the growing privacy and security challenges faced by cryptocurrency companies, especially in regions with stringent data protection regulations.

Additionally, the United States is intensifying sanctions against Venezuela, with a particular focus on the use of cryptocurrencies like the Petro. This measure is part of a broader effort to economically isolate Maduro’s government and limit its ability to use digital assets to evade sanctions.

“The VALOR Act will do just that by seeking international cooperation for a peaceful transition to democracy in Venezuela and maintaining sanctions until there is substantial and measurable progress,” Salazar said.

Lastly, the Stellar Development Foundation has invested in the Colombian company Puntored to boost remittances and financial inclusion in Latin America using blockchain technology. This investment is indicative of the growing interest in using cryptocurrencies to enhance financial services in regions with high remittance activity.